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Statutory Instruments

2018 No. 455

Terms And Conditions Of Employment

The National Minimum Wage (Amendment) Regulations 2018

Made

29th March 2018

Coming into force

1st April 2018

The Secretary of State, in exercise of the powers conferred by sections 1(3), 2, 3 and 51 of the National Minimum Wage Act 1998(1), makes the following Regulations.

A draft of these Regulations was laid before Parliament in accordance with section 51(5) of the National Minimum Wage Act 1998 and approved by a resolution of each House of Parliament.

Citation and commencement

1.  These Regulations may be cited as the National Minimum Wage (Amendment) Regulations 2018 and come into force on 1st April 2018.

Amendments to the National Minimum Wage Regulations 2015

2.—(1) The National Minimum Wage Regulations 2015(2) are amended as follows.

(2) In regulation 4 (the national living wage) for “£7.50” substitute “£7.83”.

(3) In regulation 4A(1) (workers who qualify for the national minimum wage at a different rate)—

(a)for “£7.05” substitute “£7.38”;

(b)for “£5.60” substitute “£5.90”;

(c)for “£4.05” substitute “£4.20”;

(d)for “£3.50” substitute “£3.70”.

(4) In regulation 16(1) (amount for provision of living accommodation) for “£6.40” substitute “£7.00”.

Andrew Griffiths

Minister for Small Business, Consumers and Corporate Responsibility

Department for Business, Energy and Industrial Strategy

29th March 2018

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the National Minimum Wage Regulations 2015 (“the 2015 Regulations”). These Regulations come into force on 1st April 2018.

Regulation 2(2) increases the rate of the national minimum wage for workers who are aged 25 or over (“the national living wage rate”) from £7.50 to £7.83 per hour (regulation 4 of the 2015 Regulations).

Regulation 2(3)(a) increases the rate of the national minimum wage for workers who are aged 21 or over (but not yet aged 25) from £7.05 to £7.38 per hour (regulation 4A(1)(a) of the 2015 Regulations).

Regulation 2(3)(b) increases the rate for workers who are aged 18 or over (but not yet aged 21) from £5.60 to £5.90 per hour (regulation 4A(1)(b) of the 2015 Regulations).

Regulation 2(3)(c) increases the rate for workers who are under the age of 18 from £4.05 to £4.20 per hour (regulation 4A(1)(c) of the 2015 Regulations).

The apprenticeship rate applies to workers within regulation 5(1)(a) and (b) of the 2015 Regulations. Regulation 2(3)(d) of these Regulations increases the rate for such workers from £3.50 to £3.70 per hour (regulation 4A(1)(d) of the 2015 Regulations).

Regulation 2(4) increases the accommodation offset amount which is applicable where any employer provides a worker with living accommodation from £6.40 to £7.00 for each day that accommodation is provided (regulation 16(1) of the 2015 Regulations).

A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Labour Market Directorate, Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London SW1H 0ET and is annexed to the Explanatory Memorandum which is available alongside the instrument on www.legislation.gov.uk.

(1)

1998 c.39. Section 3(1A) was inserted by S.I. 1999/583 and amended by S.I. 2007/2042; section 51(6) and (7) was amended by the Employment Act 2008 (c 24), sections 9(3) and 20 and the Schedule, Part 2.

(2)

S.I. 2015/621; relevant amending instruments are S.I. 2015/1724, S.I. 2016/68, S.I. 2016/953 and S.I. 2017/465.